Waiver of interest and penalties imposed under Law 246 of 1990

The Cyprus tax department has announced that, in accordance with the provisions of article 59(7) of the VAT Law of 2000 as amended, taxpayers may apply for the cancellation of any interest and penalties imposed under Law 246 of 1990, which has been repealed, which relate to arrears that fall within the tax periods from 1 July 1992 to 30 November 2001.
The tax department advises that taxpayers with such arrears should apply for the interest and charges to be cancelled prior to the entry into force of Law 4(I)/2017, which will allow arrears of tax to be settled by monthly instalments. Doing so will benefit taxpayers because the amount of interest and penalties cancelled under article 59(7) of the VAT Law of 2000 exceed the amount of interest and penalties cancelled under Law 4(I)/2017.